- Cetus Protocol restored user funds using treasury assets and support from the Sui Foundation after the exploit.
- The exchange launched a white hat bounty and new audits to improve security and prevent future attacks
- Affected users will receive CETUS tokens with partial immediate access and monthly unlocks over one year.
Cetus Protocol, a decentralized exchange on the Sui blockchain, officially resumed operations on June 8 after a major exploit. The platform suffered a $223 million loss on May 22 due to a vulnerability in a third-party code library.
Relaunch Strategy and Compensation Plan
Cetus released a new roadmap, including security upgrades and community-focused compensation. The exchange also introduced an open-source development model.
Liquidity pools impacted by the attack have now been replenished. The team used recovered funds, treasury reserves, and a $30 million loan from the Sui Foundation. Liquidity providers will regain access to their original positions. Recovery rates range between 85% and 99%, depending on pool damage.
To address unrecovered losses, Cetus allocated 15% of its native CETUS token supply for compensation. 5% is immediately available to affected users. The remaining 10% will unlock monthly over a 12-month period beginning June 10.
The token allocation does not increase CETUS inflation. Cetus repurposed unvested team tokens within its capped supply. LP position NFTs will serve as redemption certificates for CETUS. These NFTs remain valid even after liquidity is withdrawn.
Security Improvements and Monitoring Upgrades
Cetus has completed new security audits on all patches, contract updates, and the compensation process. More audits and real-time threat monitoring upgrades are planned. The platform also launched a white-hat bounty program. This initiative encourages ethical hackers to help find vulnerabilities before they are exploited.
Legal proceedings are ongoing in multiple jurisdictions. Authorities are working to track and recover assets. Cetus claims most of the stolen funds remain traceable.
Governance Actions and Community Involvement
On May 29, Cetus conducted an on-chain vote. This approved the transfer of $162 million in frozen assets to a secure multisig wallet. The Sui Foundation provided additional support. It issued a USDC loan to offset off-chain user losses.
The team has kept users informed through updates and forums. This transparency has helped maintain user confidence throughout the recovery phase.
Market Reaction and Long-Term Plans
Despite the relaunch, CETUS token price has fallen by 3.36% to $0.1145. The decline continued a broader downtrend since May. If additional funds are recovered during the compensation period, users may redeem CETUS for USDC.
After this window closes, remaining funds will support CETUS token buybacks and the community treasury. Cetus plans to continue its shift toward transparency and community involvement through open-source development.
